On July 8, 2026, lawmakers in Delaware unveiled Senate Bill 19 (SB19), the “Delaware Payment Stablecoin Act,” aiming to create one of the first comprehensive state-level regulatory frameworks for payment stablecoins and digital asset service providers. The bill was introduced by Senator Spiros Mantzavinos, Chairman of the Senate Banking, Business, Insurance and Technology Committee, alongside Representative Bill Bush. The initiative is part of a broader modernization effort that also includes reforms to banking and money transmission laws, aligning existing financial statutes with digital asset activities.
Core Requirements: 1:1 Reserves and Monthly Audits
At the heart of SB19 is a strict reserve requirement. Issuers must back every stablecoin 1:1 with high-quality liquid assets such as U.S. dollars, cash equivalents, or short-term Treasury securities. The bill mandates monthly public disclosures detailing reserve composition and outstanding token supply, accompanied by independent attestations from certified public accounting firms. This transparency mechanism is designed to allow users to verify the stablecoin’s solvency in real time.
Redemption rights are also clearly defined: issuers must honor redemption requests within two business days under normal conditions, with limited extensions for large withdrawals. Any fee changes require advance notice to prevent sudden user penalties.
Interest Ban: Distinguishing Payments from Deposits
Notably, SB19 explicitly prohibits issuers from offering interest or rewards simply for holding a stablecoin. This provision aims to prevent stablecoins from being marketed as deposit-like products that could evade banking regulations. The bill also sets minimum capital requirements: at least $5 million in base capital, adjusted upward based on operational risk, and sufficient to cover at least one year of projected expenses. This gives regulators a buffer in case of financial stress.
Anti-Money Laundering and Consumer Protection
SB19 imposes stringent anti-money laundering (AML) obligations, requiring issuers to comply with the Bank Secrecy Act, including Know Your Customer (KYC) procedures and transaction monitoring. Stablecoin companies must operate with safeguards comparable to traditional financial institutions. The bill creates three license categories: payment stablecoin issuer, digital asset service provider, and a combined license, all supervised by the Delaware State Bank Commissioner.
Enforcement powers include corrective action mandates for reserve shortfalls, segregation of customer assets, and custodial protections. The regulatory framework aims to instill trust while preventing misuse for illicit finance.
Alignment with Federal GENIUS Act
SB19 is closely modeled after the federal GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), enacted in 2025. That federal law created a dual-track system: large issuers fall under national oversight, while smaller issuers can operate under state regimes deemed “substantially similar.” Delaware is positioning itself to meet that standard, hoping to attract stablecoin firms seeking regulatory clarity at the state level.
The strategy echoes Delaware’s historical success in attracting credit card companies decades ago through favorable corporate laws. Now, the state aims to replicate that with digital dollars. According to local reports, the governor’s office and the University of Delaware have expressed support, calling the bill both business-friendly and consumer-oriented.
Next Steps and Industry Impact
As of now, SB19 has been referred to committee and no vote has occurred. The full text is expected to be released shortly, clarifying additional technical details and enforcement mechanisms. If passed, Delaware would join states like New York and Wyoming in the race to regulate stablecoins, potentially drawing issuers away from jurisdictions with ambiguous rules.
Industry observers note that while the bill provides certainty, the interest ban may limit some innovative use cases such as yield-bearing stablecoins. However, proponents argue that maintaining a clear separation between payments and savings is essential for financial stability. The bill’s progress will be closely watched as a bellwether for state-level crypto regulation in the United States.
FAQ
- What is Delaware Senate Bill 19? It is a proposed law to create a state-level licensing and regulatory framework for stablecoin issuers and digital asset service providers.
- How does SB19 relate to federal law? It aligns with the 2025 GENIUS Act, allowing smaller issuers to operate under certified state regimes.
- What are the key issuer requirements? 1:1 reserves, monthly public attestations, AML compliance, minimum $5 million capital, and a ban on interest payments.
- When could SB19 take effect? The bill is still in committee; implementation would follow legislative passage and regulatory rulemaking.